Autumn Statement – Key Points

The Chancellor has just finished his autumn statement announcement, and whilst there are no direct changes to the VAT legislation or recovery rules, there were some announcements that will of course be relevant to our current and prospective clients:

VAT Generally

• A petition was started to lower the rate on sanitary products in the UK.  The Government already charge the lowest rate allowable for sanitary products (reduced rate – the EU prevent us from adding any more supplies to our ‘zero’ rate) but to compensate, the government will be donating £15 million of VAT collected on sanitary products to women’s health charities.
• HMRC are making efficiencies equating to 18%.  They are restructuring and centralising their offices, and moving to a digital approach.  By the end of the decade, all taxpayers will have their own online account.

NHS

• The NHS budget is to rise from £101bn today to £120bn by 2020, with £6bn available this year.  He also announced £22bn in efficiency savings across the service, and an increase in the Better Care fund.
• Direct funding for student nurses will be abolished and will be replaced with loans.  The cap on student nurse places will be removed and 10,000 training places will be created to hopefully reduce the spend on agency nursing.
• Local councils will be given the option of adding 2% to council tax rates, for exclusive spending on mental health and social care.

Property

• From 2019, landlords will be required to pay Capital Gains tax within 30 days of the disposal.

Stamp duty rates will increase by 3% from April 2016 for second homes and buy to lets.